All Insurance Policies Are Not Created Equal

Because all insurance policies are not created equal, make sure that your policy is right for you. Renters insurance differs from company to company, so make sure you compare benefits before buying. Some key features to look for:

Replacement cost coverage. This provides enough money to buy a new item to replace the one you’ve lost. That’s better than a policy that only covers an item’s actual cash value. For example, if your 10-year-old TV is destroyed, a replacement cost policy would cover the price of a brand-new set. An actual cash value plan would only give you what the TV was worth at the time it was destroyed.

Protection against severe weather and other events. Make sure your policy not only covers property damaged or destroyed by fire but also by flooding, earthquakes and other natural disasters.

Coverage of items in your car. The policy should pay for personal items if they are stolen from your vehicle.

Living expenses if forced to move. If damage to your apartment or rental property requires you to temporarily live elsewhere, renters insurance will reimburse your living expenses.

The company’s financial strength. Insurance is only as reliable as the company that stands behind it. Make sure the company you choose has high financial strength ratings and a reputation for outstanding service.